Bulls should only be able to regain control if the index reclaims 11,170 levels comfortably, else we may consolidate around current levels.
Nifty fell nearly 2 percent, or over 200 points, for the week ended September 28. The index witnessed its fifth consecutive weekly fall.
The index breached its crucial support placed at 11,000 on the weekly basis for the first time since July. The price action on the charts suggest that market is in a downtrend but after falling consecutively for the last 4-5 weeks, a pullback rally could be on the cards.
Bulls should only be able to regain control if the index reclaims 11,170 levels comfortably else we may consolidate around current levels. A close below 10,800 could further extend the selling pressure and take the index towards 10,700-10,600 levels, suggest experts.
"At this juncture after taking a hit of around 8 percent from the highs of 11,760 with 4-weeks of continuous fall, we should expect some pullback rather than looking to go short at current levels," Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.
"Bulls should be able to regain control if Nifty50 manages to close above 11,170 levels. If the index closes above 11,17o, the next resistance level stands at 11,350 levels. On signs of weakness around these levels, one can initiate fresh shorts with a target placed between 10,700 and 10,600 kind of levels," he said.
Here is a list of top 10 money making ideas by experts which could give 5-16% return in the next 1 month:
Analyst: Jayant Manglik, President, Religare Broking
Lupin: Buy| LTP: Rs 900.9| Initiation range: 890-900| Target: Rs 980| Stop loss: 860| Return: 9%
Lupin witnessed a decent profit taking and found support around the multiple moving averages (200/100/50-EMA) on the daily chart. It is rebounding from thereon and is likely to maintain this bias ahead as well. Traders should use this dip to initiate fresh longs through Call option as per the mentioned levels.
Canara Bank: Sell Futures| Last Close: Rs 221.2| Initiation range: Rs 225-230| Target: Rs 200| Stop Loss: Rs 240| Return: 9.5%
After it failed to cross its resistance hurdle of multiple moving averages around Rs 294, Canara Bank has witnessed a steep fall of late and is likely to maintain this bias ahead too.
Further, we have similar indications from majority PSU banking counters. We advise using any uptick to create fresh shorts within the given range.
Titan Company: Sell Futures| Last Close: Rs 806.8| Initiation range: Rs 815-825| Target: Rs 760| Stop Loss: Rs 840| Return 5%
Titan Company has been consolidating for the past ten months now and has formed a distribution pattern “Head and Shoulder” on the weekly chart. It is trading on the verge of a breakdown from the same and is likely to witness a sharp fall.
The positioning of confirmation indicators is also in sync. Traders should use any bounce to go short in the mentioned zone.
Analyst: Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in
Asian Paints: Buy | LTP: Rs 1,294 | Target: Rs 1,370 | Stop Loss: Rs 1,267 | Return 6%
Last three weeks of price action is looking quite interesting with long lower shadows on the weekly charts which suggest that dips are getting bought into this counter.
Even in the last two sessions, the bulls of this counter remained indifferent to the wild swings witnessed in the broader markets.
Hence, on a sustainable pullback rally, this counter should trade somewhere around Rs 1,377 levels. The near-term strength will get cemented on a close above Rs 1,336 levels. Positional traders should buy into this with a stop of Rs 1,267 for a target of Rs 1,370.
Axis Bank: Buy| LTP: Rs 612 | Target: Rs 649 | Stop Loss: Rs 587 | Return 6%
The price behaviour of the last four sessions in this counter is looking quite interesting as it appears to be building a decent base between Rs 620 – 590 levels from the cushion of which it can rally.
In such a scenario a decent upmove towards Rs 655 can’t be ruled out. Hence, traders are advised to buy into this counter for a target of Rs 649 with a stop of Rs 587.
L&T Finance Holdings: Buy| LTP: Rs 129 | Target: Rs 147 | Stop Loss: Rs 117| Return 14%
This counter appears to have hit a short-term bottom after retracing around 50 percent of its entire up move from the lows of Rs 48 – 213 levels as it is consolidating in a narrow zone of Rs 120 – 135 levels.
On sustaining above Rs 120 levels, it can easily pullback to test its 21st September high of Rs 151 levels. Hence, positional traders can make use of this opportunity to go long for a target of Rs 147 levels with a stop of Rs 117.
Brokerage Firm: Narnolia Financial Advisors Ltd
ITC: Buy| Buy Range: Rs 287-290|Target: Rs 335 | Stop Loss: Rs 267 | Return 16%
Selling in ITC seems to be absorbed by buyers after witnessing almost 50 percent correction from the peak of Rs 323 marks. The stock seems to be bottomed out near 50% Fibonacci retracement of the entire upward swing from Rs 259 to Rs 323 levels which is supportive for the Bulls.
The emergences of Morning Star pattern near the same suggest reversal in the coming sessions. Currently, it is retesting its previous neckline of the Cup and Handle pattern on the weekly chart which is around Rs 288 levels.
Strong support is seen near Rs 280-285 zones where 61.8% Fibonacci retracement is located of the same upward swing. Traders can buy around Rsc290 with a stop loss below Rs 267 and a target of Rs 335.
NTPC: Buy| Buy Range: Rs 160-162|Target: Rs 186| Stop Loss: Rs 149| Return 15%
The stock seems to have bottomed out at the levels Rs 149 mark and from that level, it has given a breakout and surged higher. Currently, inverse Head & Shoulder is emerging on the daily chart in which the right shoulder is still pending.
But, from current levels, the risk-to-reward ratio is looking favorable. Indicators and oscillator are also conducive for the price action. One can take a long position around Rs 162-160 with a stop loss of Rs 149 and a target of Rs 186.
ICICI Bank: Buy| Buy Range: Rs 305| Target: Rs 345| Stop Loss: Rs 285| Return 13%
After the recent fall, the scrip seems to have bottomed out near its channel support line. It found a base near 50% Fibonacci retracement of the upside move from Rs 266 to Rs 346.80 which is giving hope to bulls for making long position in the scrip.
The 200-DMA is seen around Rs 305 levels which is key support. The weekly chart is showing parity with its historical levels. Oversold stochastic is also lending support to its price action. Traders can go long in the stock around Rs 305 levels with a stop loss of Rs 285 and a target of Rs 345 marks.
Mahanagar Gas: Buy| Buy around: Rs 800 |Target: Rs 900| Stop Loss: Rs 755| Return 12.5%
The scrip has given a sharp fall after hitting a peak of Rs 986.80 and it seems to be halting its downswing as it has found a strong base near the levels of Rs 790-800 levels where congestion zone is seen.
Positive divergence is seen in RSI and occurrence of double bottom price pattern indicates upside move. We saw a positive crossover in MACD & the declining histogram imply positive move on the northward side. Traders can buy around Rs 800 with a stop loss of Rs 755 and a target of Rs 900 levels.Disclaimer: The views and investment tips expressed by investment expert on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decision.